WPG2 3.07 and Lightbox

I can't find anything on this topic that seems to fit - much less work, so I'm posting here in the hopes someone might be able to help.

I've been using WPG2 successfully for the past several months, until a few days ago, when I went into my wordpress and saw the plugin had an update. So I let it update. Now Lightbox does not seem to work on old or new images posted. When a thumbnail is clicked the image simply opens up on a white page of its own. There is no error either in the browser or in the error log. I can insert images just fine, they thumbnail just fine, and everything seems to work normally. . .except that instead of opening the full sized picture in lightbox it goes to a fresh page.

This has been tried in an older installation of wordpress, and a brand clean version with no plugins, no applied themes, so I am really stumped. I also downloaded the lightbox for wordpress plugin to make sure lightbox does work - and it works fine with that plugin. This is also a theme I've been using for quite awhile and it -was- working with wpg2.

Does anyone have any ideas on how to fix this?

Thanks!